Will booming private markets lead to success for private equity trusts?

PE trusts dominated in 2021

Investment Week’s Kathleen Gallagher looks at why the sector’s top-performing funds are failing to trade at the premium.

Global private equity experienced a record-setting year in 2021, with numerous fundraisings and deals as companies looked to stay private for longer and investors hunted for alternative assets.  While performance wise private equity trusts had a similarly strong year, their overall success was more complicated, and the outlook for the sector is less than clear.  At the beginning of 2021, analysis from PwC forecast that private market assets are set to expand by between $4.2trn and $5.5trn by 2025, which would mean a market of $13.7trn to $15trn, or over 10% of global AUM.  While se...